JHMD (Photo Railway Gazette) (2)

CZECH REPUBLIC: Passenger services have restarted on part of the narrow gauge network centred on Jindřichův Hradec following financial problems at operator JHMD.

Meanwhile, an agreement has been reached for operation of the Osoblaha line to be transferred from national operator ČD to a group of local authorities.

JHMD restructuring

JHMD (Photo Railway Gazette) (1)

The 760 mm gauge lines from Jindřichův Hradec to Nová Bystřice (33 km) and Obrataň (44 km) were transferred from ČD to JHMD in February 1998.

Subsidised passenger services and steam-hauled tourist trains had been carrying around 400 000 passengers annually in recent years, but operations were suspended on October 2 2022 after JHMD accumulated debts of over KC160m and had disagreements with the Vysočina and Jihočeský regional authorities which funded PSO services. Its operating licence was withdrawn, and trains were replaced by buses.

On August 10 this year a limited tourist-focused service of four trains per day returned to the 5·5 km Nová Bystřice – Hůrky section of line in the scenic ‘Czech Canada’ area, using steam haulage from Thursday to Saturday and diesel at other times. This is operated on a commercial basis by the Good Thing subsidiary of WTT, a rail freight operator which is owned by wood-processing company 1 Písecká Lesní a Dřevařská.

JHMD (Photo Railway Gazette) (3)

A limited safety certificate enabling the restart of services was granted by state transport authority DÚ on August 3 to Správa Úzkokolejných Drah, a newly established subsidiary of JHMD, which hopes to resume services on the whole of the network.

A recovery plan pushed through by three main creditors and approved by a regional court proposes that JHMD’s assets be purchased by a private investor, enabling the partial repayment of debts. The assets would then be transferred to municipalities along the lines which would repay infrastructure, station and rolling stock costs in the long term. The two regional authorities have confirmed that they are willing to subsidise PSO passenger operations.

Good Thing as a strategic investor would buy part of the assets and a 100% stake in SÚD from JHMD.

Brno-based operator Gepard Express is to take over the year-round operation of PSO services, while commercially run steam tourist trains would be operated by Good Thing. Swietelsky Rail CZ will maintain the infrastructure.

Osoblaha line

In a separate development, on July 15 ČD and the Moravskoslezský region reached an agreement for six local authorities to take over the operation of subsidised passenger services on the 20 km Line 298 from Třemešná ve Slezsku to Osoblaha, which is the only narrow gauge line still owned by national infrastructure manager SŽ.

From December 15 services will be operated by public interest company Osoblažská Úzkorozchodná Dráha which has been formed by the Osoblaha, Bohušov, Slezské Rudoltice, Liptaň, Dívčí Hrad and Třemešná municipalities. They have been seeking to take over the line since 2022, with a view to improving the current service of just four trains per day.

Trains will be hauled by two recently-modernised 760 mm gauge diesel locos which will be leased from ČD.